Which generation is most ready to spend?
There is a pronounced age gap in consumer spending willingness, according to a new survey.
According to the third annual "State of the American Shopper" survey from financial services company Bread Financial, younger consumers are generally more optimistic about the economy and more willing to spend than their older counterparts.
Results reveals that almost two in three (64%) Gen Z and millennial respondents are positive about the economy, compared to four in 10 baby boomer respondents. Similarly, 77% of Gen Z and millennial respondents are confident they are on the right track financially, 10% more than the seven-in-10 baby boomer respondents who said so.
Overall, more than half (53%) of respondents say they are cutting back on spending this year – but this down from 58% of all respondents in the 2023 version of the survey.
Broken down by generation, the survey indicates that almost half of Gen Z (45%) and millennial (44%) respondents said they are spending more this year, compared to only 26% of surveyed baby boomers and 30% of surveyed Gen X who say they are increasing their spending.
Conversely, only 19% of Gen Z and 25% of millennial respondents are spending less year-over-year, compared to 38% of baby boomer and 37% of Gen X respondents.
[READ MORE: Retail sales show small improvement in September]
Other findings
- More than one-third of respondents (34%) say they are curious about how AI could improve their shopping experiences. Nearly half of respondents (46%) say they would use AI to find the best deal.
- Nine-in-10 surveyed consumers still shop in stores, and 34% say they are shopping in stores more often. More than one-third (36%) of respondents who are online shoppers made a purchase on a retailer’s mobile application (up from 33% in 2023), and one in five surveyed online shoppers (20%) made a purchase on social media (up from only 17% in 2023).
